{"formats":[{"name":"JSON","format":"json","url":"\/downloads\/2026\/code-json\/8.8A-504.json"},{"name":"Plain Text","format":"text","url":"\/downloads\/2026\/code-text\/8.8A-504.txt"},{"name":"XML","format":"xml","url":"\/downloads\/2026\/code-xml\/8.8A-504.xml"},{"name":"HTML","format":"html","url":"\/downloads\/2026\/code-html\/8.8A-504.html"}],"law_id":378345,"edition_id":2,"section_id":378345,"structure_id":53762,"section_number":"8.8A-504","catch_line":"Duty of securities intermediary to maintain financial asset","history":"1996, c. 216.","full_text":"a\n\nA securities intermediary shall promptly obtain and thereafter maintain a financial asset in a quantity corresponding to the aggregate of all security entitlements it has established in favor of its entitlement holders with respect to that financial asset. The securities intermediary may maintain those financial assets directly or through one or more other securities intermediaries.\n\nb\n\nExcept to the extent otherwise agreed by its entitlement holder, a securities intermediary may not grant any security interests in a financial asset it is obligated to maintain pursuant to subsection (a).\n\nc\n\nA securities intermediary satisfies the duty in subsection (a) if:\n\n1\n\nthe securities intermediary acts with respect to the duty as agreed upon by the entitlement holder and the securities intermediary; or\n\n2\n\nin the absence of agreement, the securities intermediary exercises due care in accordance with reasonable commercial standards to obtain and maintain the financial asset.\n\nd\n\nThis section does not apply to a clearing corporation that is itself the obligor of an option or similar obligation to which its entitlement holders have security entitlements.\n\n","order_by":null,"text":{"0":{"id":1411712,"text":"A securities intermediary shall promptly obtain and thereafter maintain a financial asset in a quantity corresponding to the aggregate of all security entitlements it has established in favor of its entitlement holders with respect to that financial asset. The securities intermediary may maintain those financial assets directly or through one or more other securities intermediaries.","type":"section","prefixes":["a"],"prefix":"a","entire_prefix":"a","prefix_anchor":"a","level":1,"next_prefix":"b"},"1":{"id":1411713,"text":"Except to the extent otherwise agreed by its entitlement holder, a securities intermediary may not grant any security interests in a financial asset it is obligated to maintain pursuant to subsection (a).","type":"section","prefixes":["b"],"prefix":"b","entire_prefix":"b","prefix_anchor":"b","level":1,"prior_prefix":"a","next_prefix":"c"},"2":{"id":1411714,"text":"A securities intermediary satisfies the duty in subsection (a) if:","type":"section","prefixes":["c"],"prefix":"c","entire_prefix":"c","prefix_anchor":"c","level":1,"prior_prefix":"b","next_prefix":"c1"},"3":{"id":1411715,"text":"the securities intermediary acts with respect to the duty as agreed upon by the entitlement holder and the securities intermediary; or","type":"section","prefixes":["c","1"],"prefix":"1","entire_prefix":"c1","prefix_anchor":"c1","level":2,"prior_prefix":"c","next_prefix":"c2"},"4":{"id":1411716,"text":"in the absence of agreement, the securities intermediary exercises due care in accordance with reasonable commercial standards to obtain and maintain the financial asset.","type":"section","prefixes":["c","2"],"prefix":"2","entire_prefix":"c2","prefix_anchor":"c2","level":2,"prior_prefix":"c1","next_prefix":"d"},"5":{"id":1411717,"text":"This section does not apply to a clearing corporation that is itself the obligor of an option or similar obligation to which its entitlement holders have security entitlements.","type":"section","prefixes":["d"],"prefix":"d","entire_prefix":"d","prefix_anchor":"d","level":1,"prior_prefix":"c2"}},"ancestry":[{"id":53762,"edition_id":2,"name":"Security Entitlements","identifier":"5","label":"part","depth":2,"order_by":5,"parent_id":53757,"metadata":{"child_laws":11,"child_structures":0},"date_created":"2026-08-02 03:21:53","date_modified":"2026-08-02 12:28:36","permalink":{"id":1510783,"object_type":"structure","relational_id":53762,"identifier":"5","token":"8.8A\/5","url":"\/8.8A\/5\/","edition_id":2,"permalink":0,"preferred":1}},{"id":53757,"edition_id":2,"name":"Commercial Code \u2014 Investment Securities","identifier":"8.8A","label":"title","depth":1,"order_by":28,"parent_id":null,"metadata":{"child_laws":52,"child_structures":6},"date_created":"2026-08-02 03:21:46","date_modified":"2026-08-02 12:28:35","permalink":{"id":1510613,"object_type":"structure","relational_id":53757,"identifier":"8.8A","token":"8.8A","url":"\/8.8A\/","edition_id":2,"permalink":0,"preferred":1}}],"structure_contents":[{"id":378342,"structure_id":53762,"section_number":"8.8A-501","catch_line":"Securities account; acquisition of security entitlement from securities intermediary","url":"\/8.8A-501\/","token":"8.8A\/5\/8.8A-501","metadata":false},{"id":378343,"structure_id":53762,"section_number":"8.8A-502","catch_line":"Assertion of adverse claim against entitlement holder","url":"\/8.8A-502\/","token":"8.8A\/5\/8.8A-502","metadata":false},{"id":378344,"structure_id":53762,"section_number":"8.8A-503","catch_line":"Property interest of entitlement holder in financial asset held by securities intermediary","url":"\/8.8A-503\/","token":"8.8A\/5\/8.8A-503","metadata":false},{"id":378345,"structure_id":53762,"section_number":"8.8A-504","catch_line":"Duty of securities intermediary to maintain financial asset","url":"\/8.8A-504\/","token":"8.8A\/5\/8.8A-504","metadata":false},{"id":378346,"structure_id":53762,"section_number":"8.8A-505","catch_line":"Duty of securities intermediary with respect to payments and distributions","url":"\/8.8A-505\/","token":"8.8A\/5\/8.8A-505","metadata":false},{"id":378347,"structure_id":53762,"section_number":"8.8A-506","catch_line":"Duty of securities intermediary to exercise rights as directed by entitlement holder","url":"\/8.8A-506\/","token":"8.8A\/5\/8.8A-506","metadata":{"court_decisions":""}},{"id":378348,"structure_id":53762,"section_number":"8.8A-507","catch_line":"Duty of securities intermediary to comply with entitlement order","url":"\/8.8A-507\/","token":"8.8A\/5\/8.8A-507","metadata":{"court_decisions":""}},{"id":378349,"structure_id":53762,"section_number":"8.8A-508","catch_line":"Duty of securities intermediary to change entitlement holder's position to other form of security holding","url":"\/8.8A-508\/","token":"8.8A\/5\/8.8A-508","metadata":false},{"id":378350,"structure_id":53762,"section_number":"8.8A-509","catch_line":"Specification of duties of securities intermediary by other statute or regulation; manner of performance of duties of securities intermediary and exercise of rights of entitlement holder","url":"\/8.8A-509\/","token":"8.8A\/5\/8.8A-509","metadata":false},{"id":378351,"structure_id":53762,"section_number":"8.8A-510","catch_line":"Rights of purchaser of security entitlement from entitlement holder","url":"\/8.8A-510\/","token":"8.8A\/5\/8.8A-510","metadata":false},{"id":378352,"structure_id":53762,"section_number":"8.8A-511","catch_line":"Priority among security interests and entitlement holders","url":"\/8.8A-511\/","token":"8.8A\/5\/8.8A-511","metadata":false}],"previous_section":{"id":378344,"structure_id":53762,"section_number":"8.8A-503","catch_line":"Property interest of entitlement holder in financial asset held by securities intermediary","url":"\/8.8A-503\/","token":"8.8A\/5\/8.8A-503","metadata":false},"next_section":{"id":378346,"structure_id":53762,"section_number":"8.8A-505","catch_line":"Duty of securities intermediary with respect to payments and distributions","url":"\/8.8A-505\/","token":"8.8A\/5\/8.8A-505","metadata":false},"metadata":false,"official_url":"https:\/\/law.lis.virginia.gov\/vacode\/8.8A-504\/","history_text":"

This law was first created in 1996. The record of its establishment is cataloged in chapter 216<\/a> of that year\u2019s edition of \u201cActs of Assembly,\u201d the annual state publication listing all changes made to the Code of Virginia in that year.<\/p>","references":[{"id":378344,"section_number":"8.8A-503","catch_line":"Property interest of entitlement holder in financial asset held by securities intermediary","order_by":null,"url":"\/8.8A-503\/"},{"id":378350,"section_number":"8.8A-509","catch_line":"Specification of duties of securities intermediary by other statute or regulation; manner of performance of duties of securities intermediary and exercise of rights of entitlement holder","order_by":null,"url":"\/8.8A-509\/"}],"refers_to":false,"permalink":{"id":1510797,"object_type":"law","relational_id":378345,"identifier":"8.8A-504","token":"8.8A\/5\/8.8A-504","url":"\/8.8A-504\/","edition_id":2,"permalink":0,"preferred":1},"url":"\/8.8A-504\/","token":"8.8A\/5\/8.8A-504","dublin_core":{"Title":"Duty of securities intermediary to maintain financial asset","Type":"Text","Format":"text\/html","Identifier":"\u00a7 8.8A-504","Relation":"Code of Virginia"},"html":"\n\t\t\t\t\t\t

a.<\/span> A securities intermediary shall promptly obtain and thereafter maintain a financial asset in a quantity corresponding to the aggregate of all security entitlements it has established in favor of its entitlement holders with respect to that financial asset. The securities intermediary may maintain those financial assets<\/span> directly or through one or more other securities intermediaries. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

b.<\/span> Except to the extent otherwise agreed by its entitlement holder, a securities intermediary may not grant any security interests in a financial asset it is obligated to maintain pursuant to subsection (a). <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

c.<\/span> A securities intermediary satisfies the duty in subsection (a) if: <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

1.<\/span> the securities intermediary acts with respect to the duty as agreed upon by the entitlement holder and the securities intermediary; or <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

2.<\/span> in the absence of agreement, the securities intermediary exercises due care in accordance with reasonable commercial standards to obtain and maintain the financial asset. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

d.<\/span> This section does not apply to a clearing corporation that is itself the obligor of an option or similar obligation to which its entitlement holders have security entitlements. <\/i><\/a><\/p><\/section>","plain_text":" CODE OF VIRGINIA\n\nDUTY OF SECURITIES INTERMEDIARY TO MAINTAIN FINANCIAL ASSET (\u00a7 8.8A-504)\n\na. A securities intermediary shall promptly obtain and thereafter maintain a\nfinancial asset in a quantity corresponding to the aggregate of all security\nentitlements it has established in favor of its entitlement holders with respect\nto that financial asset. The securities intermediary may maintain those\nfinancial assets directly or through one or more other securities\nintermediaries.\n\nb. Except to the extent otherwise agreed by its entitlement holder, a securities\nintermediary may not grant any security interests in a financial asset it is\nobligated to maintain pursuant to subsection (a).\n\nc. A securities intermediary satisfies the duty in subsection (a) if:\n\n 1. the securities intermediary acts with respect to the duty as agreed upon by\n the entitlement holder and the securities intermediary; or\n\n 2. in the absence of agreement, the securities intermediary exercises due care\n in accordance with reasonable commercial standards to obtain and maintain the\n financial asset.\n\nd. This section does not apply to a clearing corporation that is itself the\nobligor of an option or similar obligation to which its entitlement holders have\nsecurity entitlements.\n\nHISTORY: 1996, c. 216.","edition":{"id":2,"name":"2026","slug":"2026","date_created":"2026-07-16 18:40:23","date_modified":"2026-08-02 15:14:36","current":1,"order_by":2,"last_import":"2026-08-02 12:37:30"}}